Dolby Laboratories Reports Fourth Quarter and Fiscal 2019 Financial Results
investor.dolby.com
SAN FRANCISCO, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Dolby Laboratories, Inc. (NYSE:DLB) today announced the Company's financial results for the fourth quarter and fiscal year that ended September 27, 2019. For the fourth quarter, Dolby reported total revenue of $298.8 million, compared to $240.6 million for the fourth quarter of fiscal 2018. For fiscal 2019, Dolby reported total revenue of $1.24 billion, compared to $1.05 billion for fiscal 2018.
“We achieved solid financial performance in 2019 and continued to build momentum for the combined Dolby Vision and Dolby Atmos experience, highlighted by new offerings from Apple and Disney,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We also introduced Dolby Atmos music, a completely new way for artists to create and fans to experience music, which is now available on Amazon Echo Studio and Amazon Music HD.”
Fourth quarter GAAP net income was $43.9 million, or $0.43 per diluted share, compared to GAAP net income of $26.7 million, or $0.25 per diluted share, for the fourth quarter of fiscal 2018. On a non-GAAP basis, fourth quarter net income was $67.6 million, or $0.66 per diluted share, compared to non-GAAP net income of $23.5 million, or $0.22 per diluted share, for the fourth quarter of fiscal 2018. Fourth quarter cash flows from operations was $130.5 million, compared to $111.7 million for the fourth quarter of fiscal 2018. A complete listing of Dolby's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Fiscal 2019 GAAP net income was $255.2 million, or $2.44 per diluted share, compared to $41.7 million, or $0.39 per diluted share for fiscal 2018. On a non-GAAP basis, fiscal 2019 net income was $334.6 million, or $3.20 per diluted share, compared to $215.8 million, or $2.02 per diluted share, for fiscal 2018. Fiscal 2019 cash flows from operations was $327.7 million, compared to $352.2 million for fiscal 2018.
As previously indicated, Dolby adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606) in the first quarter of fiscal 2019, and today’s announced results and the financial outlook are presented in accordance with that new revenue standard. Dolby adopted ASC 606 using the full retrospective transition method, therefore all prior periods are also presented in accordance with the new revenue standard. Included at the end of this press release are financial results for fiscal 2017, fiscal 2018, and the four quarters of fiscal 2018, as adjusted in accordance with ASC 606.
Dividend
Today, Dolby announced a cash dividend of $0.22 per share of Class A and Class B common stock, payable on December 4, 2019, to stockholders of record as of the close of business on November 26, 2019.
Financial Outlook
First Quarter Fiscal 2020
Dolby is providing the following estimates for its first quarter of fiscal 2020:
Total revenue will range from $275 million to $295 million Gross margin percentages will be approximately 88% on a GAAP basis and approximately 89% on a non-GAAP basis Operating expenses will range from $214 million to $220 million on a GAAP basis and from $192 million to $198 million on a non-GAAP basis Effective tax rate will range from 18% to 21% on both a GAAP basis and non-GAAP basis Diluted earnings per share will range from $0.27 to $0.33 on a GAAP basis and from $0.45 to $0.51 on a non-GAAP basis Fiscal Year 2020
Dolby is providing the following estimates for its fiscal year 2020:
Total revenue will range from $1.30 billion to $1.35 billion Gross margin percentages will range from 87% to 88% on a GAAP basis and from 88% to 89% on a non-GAAP basis Operating expenses will range from $829 million to $849 million on a GAAP basis and from $740 million to $760 million on a non-GAAP basis Effective tax rate will range from 18% to 21% on both a GAAP basis and non-GAAP basis Diluted earnings per share will range from $2.64 to $2.74 on a GAAP basis and from $3.40 to $3.50 on a non-GAAP basis |
